Monday, May 24, 2010
I decided to check other companies as we thought we were paying a lot of cash for homeowners insurance with falling values and lower replacement costs. We checked three companies and they all use an estimator to figure the replacement costs of your digs. All three companies we checked were pretty close on the replacement values except for the current insurer. Their valuations were significantly higher. What was going on with the difference?
Here's the deal. You need to initiate the process of having your home value reset and your insurance premium will reflect the new (perhaps lower) costs of replacement in this economy. The insurance companies won't do this for you. You have to ask..you don't ask, you continue to pay higher premiums. This is how all the insurance companies can tell you they are lower in cost if you switch to their company.
Replacement costs for homes and businesses have dropped dramatically in the past two years. We were paying an insurance premium reflecting higher than estimated cost to replace/rebuild our home.
A call to your agent will initiate the process. Check your "DEC SHEET" aka declarations page and ask the value to be checked. It could save you some cash come renewal time on your homeowners policy.
Posted by Paul Alldredge at 11:02 AM